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1. Bank regulation
1.1 PRUDENTIAL REGULATION
a) General
- EU
EBA: Consultation on draft Guidelines on the authorisation of third country branches in accordance with Article 48c(8) CRD VI
Status: Consultation
Deadline for the submission of comments: 03/02/2026
The EBA) launched a consultation on draft Guidelines on the authorisation of third-country branches (TCBs) under Article 48c(8) CRD VI. The Guidelines set out: (i) the list of information to be included in the application, concerning matters such as the business plan, capital endowment, liquidity, internal governance, booking arrangement and reporting requirements and information about head undertaking(s), in particular their compliance with prudential requirements and a reasoned, third party legal opinion on the absence of impediments in the third country's framework precluding the ability of the TCB to comply with the EU and prudential legislation and regulation; (ii) the procedure for authorisation, as well as standard forms and templates for the provision of the information required;
(iii) the conditions for granting authorisation; and (iv) the conditions under which competent authorities may rely on information that has already been provided in the process of any prior authorisation third country branch authorisation.
The Guidelines apply to national competent authorities and TCBs subject to the requirements set out in Title VI of the CRD. For TCBs treated under national law as credit institutions, the Guidelines apply only to the extent that the requirements in CRD VI specific to TCBs (such as booking requirements for originated business) do not apply to credit institutions.
A public hearing is scheduled for 10 December. Following consultation and approval, the Guidelines will be translated into the official EU languages and published on the EBA website, with competent authorities required to report on whether they comply or intend to comply within two months. They will apply from 11 January 2027, in line with the commencement date of the harmonised authorisation requirements for TCBs introduced by CRD VI.
Date of publication: 03/11/2025
- International
BCBS: Report on further information related to its 2025 assessment of G-SIBs
Status: Final
The BCBS published a report on further information related to its 2025 assessment of global systemically important banks (G-SIBs), with additional details to improve understanding of the scoring methodology. It sets out that further details include global denominators and individual bank indicators. The release accompanies the FSB's updated G- SIB list.
Date of publication: 27/11/2025
BCBS: Summary of meeting discussion and forward-looking priorities
Status: Final
BCBS published a summary of its latest meeting in which members discussed a range of initiatives. The committee reaffirmed its commitment to full and consistent implementation of Basel III standards and approved final principles for managing third-party risk in banking, which will be released next month. It also agreed to expedite a targeted review of its prudential standard for banks' cryptoasset exposures in response to market developments. Other priorities include examining synthetic risk transfers (SRTs), consulting on machine-readable Pillar 3 disclosures (expected in December) and consolidating Guidelines into a more user-friendly format. The committee also approved assessment reports on the UK implementation of the net stable funding ratio and large exposures framework, which are expected next month, and committed to pursue further analytical work into financial risks arising from extreme weather events.
Date of publication. 19/11/2025
b) Solvency/Own funds issues
- EU
Commission Implementing Regulation (EU) 2025/2338 amending Implementing Regulation (EU) 2016/100 laying down ITS specifying the joint decision process with regard to the application for certain prudential permissions pursuant to the CRR
Status: Published in the OJ
Date of entry into force: 11/12/2025 Date of application: 11/12/2025
The Commission Implementing Regulation (EU) 2025/2338 was published in the OJ. The amendments update the ITS under Commission Implementing Regulation (EU) 2016/100, which govern the joint decision process for competent authorities when granting permission to use internal models for credit risk, counterparty credit risk and market risk for prudential purposes for certain entities in banking groups, as required by Article 20(8) CRR.
The amending regulation introduces three key changes: (i) the removal of the advanced measurement approach for operational risk, reflecting amendments to the CRR by CRR III (Regulation (EU) 2024/1623); (ii) the alignment with new RTS and ITS on the functioning of supervisory colleges that were published in August (Commission Delegated Regulation (EU) 2025/791 and Implementing Regulation (EU) 2025/790); and (iii) Commission Delegated Regulation (EU) 2025/1496, which sets out that the current requirements on the calculation of own funds requirements for market risk will apply until 1 January 2027.
Date of publication: 21/11/2025
EC: Call for evidence on application of market risk prudential framework
Status: Call for evidence
Deadline for the submission of comments: 16/12/2025
The EC published a call for evidence on a proposed delegated act to amend market risk rules under the Fundamental Review of the Trading Book (FRTB) in Basel III. This follows the November consultation where responses are due by 6 January 2026. Although most Basel III requirements have applied since January, the EC postponed FRTB implementation on several occasions and most recently to 1 January 2027 due to delays and uncertainty regarding FRTB implementation in other major jurisdictions. As a result, the EC is evaluating whether to use the empowerment granted under Article 461a of the Capital Requirements Regulation to adopt a delegated act
to mitigate potential negative impacts arising from an unlevel playing field in the international implementation of the FRTB. It would also aim to incorporate those targeted changes already proposed by other jurisdictions that the EC believes can improve the EU framework (e.g., removing excessive rigidity and preventing excessive operational burden on banks). The deadline for feedback is 18 December.
Date of publication: 18/11/2025
EC: Targeted consultation on the application of the market risk prudential framework
Status: Consultation
Deadline for the submission of comments: 06/01/2026
The EC launched a consultation on the Fundamental Review of the Trading Book (FRTB) under Basel III, focusing on market risk for banks. Although most Basel III requirements have applied since January, the EC postponed FRTB implementation on several occasions and most recently to 1 January 2027 due to delays and uncertainty regarding FRTB implementation in other major jurisdictions. To address potential negative impacts arising from an unlevel playing field in the international implementation of the FRTB, the consultation seeks feedback on whether the EC should adopt a delegated act, using its powers under Article 461a of the Capital Requirements Regulation by the end of March 2026. This empowerment, due to previous postponements, now allows the introduction of targeted relief measures and targeted multipliers for only up to three years. Longer-term solutions will be duly considered in a comprehensive and timely way. The proposed policy options comprise two main components: (i) the introduction of temporary targeted amendments to the market risk framework that would address aspects of the framework on which other jurisdictions have already deviated or indicated that they would plan to deviate in their final FRTB implementation; and (ii) the introduction of a multiplier for the overall market risk capital requirements that banks negatively impacted by the new rules (i.e., banks facing an increase in capital requirements for market risk) would be allowed to use to significantly limit for three years their increases in market risk capital requirements increases. The EC highlights that due to the temporary nature of the multiplier and its objective, the methodology should be simple and risk-sensitive, and relatively easy to implement, maintain and supervise.
Date of publication: 06/11/2025
EBA: Peer review follow-up report excluding transactions with non-financial counterparties established in a third country from CVA risk
Status: Final
The EBA published a follow-up peer review report examining the supervisory practices of EU competent authorities regarding their assessment of credit valuation adjustment (CVA) risk of the institutions under their supervision. The same four EU competent authorities that were part of the EBA's 2023 peer review were also part of this follow-up review. The EBA found that competent authorities continue to largely assess CVA risk sufficiently, using approachesthat are fit for purpose in satisfying the regulatory and supervisory review and evaluation process Guidelines. Furthermore, since the 2023 report, all competent authorities have made progress to strengthen their CVA risk assessments and address the follow-up measures suggested as part of that report. However, only one competent authority was found to have made specific efforts to review compliance with the RTS in Commission Delegated Regulation (EU) 2018/728 on the procedures for excluding transactions with non-financial counterparties established in a third country from the own funds requirements for CVA risk (Exclusion RTS). The EBA urges continued efforts to ensure robust CVA risk management and compliance with the Exclusion RTS to ensure that this risk is properly managed and capitalised by the institutions under their supervision.
Date of publication: 06/11/2025
- International
BCBS: Technical amendment on the hedging of counterparty credit risk exposures
Status: Final
The BCBS published a final technical amendment to the Basel framework, clarifying the treatment of guarantees and credit derivatives used to hedge counterparty credit risk (CCR) from derivative exposures subject to the standardised approach to counterparty credit risk or the internal models method.
Date of publication: 28/11/2025
FSB: Reaffirmation of the decision to use IAIS holistic framework assessments instead of an annual identification of G-SIIs
Status: Final
The FSB published a reaffirmation of the decision to use IAIS holistic framework assessments instead of an annual identification of G-SIIs. This communication replaces the public communication issued on the same topic in 2022.
Date of publication: 25/11/2025
c) Securitisation
(i) EU
ECB: Opinion regarding EC's proposed securitisation reforms
Status: Final
The ECB issued its opinion on the European Commission's proposed amendments to the EU securitisation framework, which was submitted in June. The package consists of a proposal to amend the EU Securitisation Regulation, a proposal to amend the Capital Requirements Regulation as regards exposures to securitisations and a consultation on measures to amend the Liquidity Coverage Ratio (LCR) Delegated Regulation. The ECB broadly supports the reforms aimed at enhancing the functioning of the EU's securitisation market, but makes a number of general and specific observations, including that:
- Proposed changes to synthetic securitisations require careful Although this segment is driving market growth, if not properly managed by originator credit institutions, large synthetic securitisations could amplify procyclicality through rollover risk, potentially affecting financial stability.
- Lowering capital requirements should apply only to securitisations of very high structural and credit quality, with safeguards to maintain While welcoming the concept of "resilient transactions," the ECB finds the proposed recalibration of existing requirements overly complex and excessive. It proposes specific changes concerning the recalibration of the securitisation prudential framework, including the p factor and risk weight floor.
- Proportionality and simplification in investor due diligence requirements is welcome, but the ECB urges a clearer legal basis and supervisory safeguards.
- The ECB supports risk retention exemptions for public-guaranteed tranches but suggests additional safeguards for high-risk/NPE transactions.
- Disclosure requirements may be simplified but must maintain essential data To this end, the ECB insists on the retention of essential data and inclusion of climate-related indicators.
- The proposal to amend the homogeneity requirement for STS securitisations backed by loans to small and medium-sized enterprises should be complemented by additional restrictions for the remaining pool
- The proposal to broaden the eligibility criteria for credit protection agreements under the STS framework to include unfunded guarantees provided by (re)insurance companies risks increasing both concentration and counterparty
- Caution should be exercised to avoid redefining "public" securitisations in ways that disrupt private market
- EU-level supervision for STS criteria is a market supervision task, not a traditional prudential Assigning it to prudential supervisors, like the ECB, would require additional resources.
Where the ECB recommends that the proposed regulations are amended, specific drafting proposals are set out in a separate technical working document.
Date of publication: 11/11/2025
d) Risk management/SREP/Pillar 2/Outsourcing/NPL
- EU
ECB: Results of the SREP for 2025
Status: Final
The ECB published its results of the SREP for 2025. The review covers 105 banks under ECB supervision and looks at their capital, liquidity, profitability, governance and risk management. Overall, banks maintained robust capital and liquidity positions and strong profitability in the second quarter of 2025. It found, among others, that the assessed banks maintained robust capital and liquidity positions and strong profitability in the second quarter of 2025.
Similarly, liquidity buffers remained well above the 100% minimum requirement, with the aggregate liquidity coverage ratio (LCR) at 158% in the second quarter of 2025. Banks retained good access to retail and wholesale funding, with an average net stable funding ratio (NSFR) broadly stable at 127%.
Date of publication: 18/11/2025
e) Internal governance/"Authorised Persons Regime"
- EU
EBA: Peer review on gender diversity
Status: Final
The EBA published a peer review report assessing how competent authorities have implemented and supervised gender diversity requirements. EU legislation requires that credit institutions have robust governance arrangements, including gender-neutral remuneration policies and diversity policies. The review examined six competent authorities, including the ECB, on the application of the respective requirements under CRD IV, the CRR and certain EBA guidelines across six major areas. It found that most requirements checked have been fully or largely incorporated into the supervisory framework by all supervisors reviewed. However, deficiencies were noted, particularly in the use of supervisors' own benchmarking of diversity practices, where three supervisors were rated "partially applied" overall, with five out of six supervisors being rated "partially applied" on the secondcriterion of that benchmark, which concerns the further use of own diversity benchmarking results. The EBA recommends improvements in collecting and publishing supervisors' benchmarking results to enhance transparency and to improve the ability of credit institutions to compare with their peers. Both individual and general follow-up measures, as well as best practices, have been adopted to strengthen consistency and effectiveness across the EU. The EBA will conduct a follow-up peer review of the implementation of the measures included in the report in two years.
Date of publication: 26/11/2025
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